topic Re: Another Cap1 thread of an adventure of getting a CLI in Credit Card Applications

Another Cap1 thread of an adventure of getting a CLI

Anonymous — Tue, 30 Apr 2019 15:36:29 GMT

So my last denial of an CLI was due to credit usage too high, had a balance and was paying it off with larger than minimums, which was about 9 months ago and I paid off my balance and received an increase, I updated to the Venture One Card and after the 6 month period I applied for another CLI, and was denied for credit usage too low, well last month I took out a balance transfer out for around $1111, charged my cellphone bill $87 and utility bill of$92. So my balance was around $1,290 and a ratio of 28%. I made 3 payments one for $87, one for $501.50 and $780.50 all spread out to show multiple payments being made. After the statement date closed, I applied again for a CLI and was told the same thing, credit usage too low. Which makes me think it’s an automated process when you request a CLI with Cap1. I just did another balance transfer for $2500 and will be doing the same thing as I did last month and see what the automated process thinks next month

Re: Another Cap1 thread of an adventure of getting a CLI

Anonymous — Tue, 30 Apr 2019 15:44:00 GMT

At the start of your post you stated that your denial reason was credit usage too high, then later in the post say you received the "same" denial reason of credit usage too low. Which is it?

These are very different things. Credit usage too high suggests high utilization where you're at an elevated risk (in their eyes) and they don't want to extend more credit to you as a result. Credit usage too low means in their view you're not spending enough on their card or using enough of your current limit to justify a CLI.

Re: Another Cap1 thread of an adventure of getting a CLI

Anonymous — Tue, 30 Apr 2019 16:29:44 GMT

@Anonymous wrote:
At the start of your post you stated that your denial reason was credit usage too high, then later in the post say you received the "same" denial reason of credit usage too low. Which is it?

These are very different things. Credit usage too high suggests high utilization where you're at an elevated risk (in their eyes) and they don't want to extend more credit to you as a result. Credit usage too low means in their view you're not spending enough on their card or using enough of your current limit to justify a CLI.

Your guess is as good as mine because my credit usage was high last month but paid off and Cap1 gives me another denial based on credit usage too low???... Just shows how Cap1 is and why I hate this card, but whatever I have a thin file and I have to deal with them in order to get what I want in the end

Re: Another Cap1 thread of an adventure of getting a CLI

dynamicvb — Tue, 30 Apr 2019 18:29:25 GMT

I'm not sure of these reason codes, but if you are doing balance transfers then those are not swipes. I would think that is what they mean with the credit usage too low.

Re: Another Cap1 thread of an adventure of getting a CLI

Blackswizz750 — Tue, 30 Apr 2019 20:48:31 GMT

As the other poster said, do swipes as well and pif or off in chunks. I also think they have a CLI per 6 month rule. If thats not so, point it out.

Re: Another Cap1 thread of an adventure of getting a CLI

FireMedic1 — Tue, 30 Apr 2019 23:28:42 GMT

Which card are you talking about?

Re: Another Cap1 thread of an adventure of getting a CLI

FireMedic1 — Tue, 30 Apr 2019 23:31:21 GMT

@Anonymous wrote:
@Anonymous wrote:
At the start of your post you stated that your denial reason was credit usage too high, then later in the post say you received the "same" denial reason of credit usage too low. Which is it?

These are very different things. Credit usage too high suggests high utilization where you're at an elevated risk (in their eyes) and they don't want to extend more credit to you as a result. Credit usage too low means in their view you're not spending enough on their card or using enough of your current limit to justify a CLI.

Your guess is as good as mine because my credit usage was high last month but paid off and Cap1 gives me another denial based on credit usage too low???... Just shows how Cap1 is and why I hate this card, but whatever I have a thin file and I have to deal with them in order to get what I want in the end

Cap1 is no different than most of the lenders today. CLI's used to fly in. But times have changed. Just because we use a card for whatever amount doesn't entitle us to a CLI whenever we want. Its their money we borrow. Not ours. Dont hate. Just play the game.

Re: Another Cap1 thread of an adventure of getting a CLI

Anonymous — Wed, 01 May 2019 01:51:52 GMT

I don’t know, Cap CLIs never really were as easy as, say, Disco or Sync. They do tend to actually hold back CLIs from people who put through thousands of dollars a month as well. They’re very puzzling with their decisions at times.

Re: Another Cap1 thread of an adventure of getting a CLI

Anonymous — Wed, 01 May 2019 02:03:35 GMT

I've found Capital One to be quite conservative with CLIs and I think that's a good thing. If I'm only putting (say) 25% of my limit through their card per cycle and paying it off in full, that doesn't show them that I "need" a greater limit. On a $10k credit line, that's $2500 which may seem like a good spend in terms of dollars, but percentage wise there's still plenty of breathing room there and absolutely no reason a CLI should be given.

Contrast that to Amex or Discover that will give someone a CLI when they are using 0%-1% of their credit limit during a cycle. It's lenders like Amex and Discover that cause us to get pissed about those like Capital One in this example... but Capital One is really the "smart" one here and Amex and Discover are the idiots from a business perspective in terms of risk/reward.

Re: Another Cap1 thread of an adventure of getting a CLI

Anonymous — Wed, 01 May 2019 02:56:34 GMT

@Anonymous wrote:
I've found Capital One to be quite conservative with CLIs and I think that's a good thing. If I'm only putting (say) 25% of my limit through their card per cycle and paying it off in full, that doesn't show them that I "need" a greater limit. On a $10k credit line, that's $2500 which may seem like a good spend in terms of dollars, but percentage wise there's still plenty of breathing room there and absolutely no reason a CLI should be given.

Contrast that to Amex or Discover that will give someone a CLI when they are using 0%-1% of their credit limit during a cycle. It's lenders like Amex and Discover that cause us to get pissed about those like Capital One in this example... but Capital One is really the "smart" one here and Amex and Discover are the idiots from a business perspective in terms of risk/reward.

This post is a example of how wrong you are, when people with BKs get CLI from $5k to $8k with Cap1, who’s really the idiots? Who’s running the risk vs giving someone a CLI with no BK? I only have a $4500 CL and that’s been over the long run of 4 years, so that $1290 I used last month is using the credit line I was given, which I made a mistake and stated I was denied for usage. It seems I am being denied for recent use of credit line too low, will they say the same thing next month, when I have used $2500 of the credit line? I will be at a 55% debt ratio instead of the 28%, of last month, which I expect my score to drop farther. I do expect to get a CLI, but since this automated process is delayed, it may take 1 more balance transfer to show them credit line is being used

Re: Another Cap1 thread of an adventure of getting a CLI

Anonymous — Wed, 01 May 2019 03:16:59 GMT

Contrast that to Amex or Discover that will give someone a CLI when they are using 0%-1% of their credit limit during a cycle. It's lenders like Amex and Discover that cause us to get pissed about those like Capital One in this example... but Capital One is really the "smart" one here and Amex and Discover are the idiots from a business perspective in terms of risk/reward.

I would say the same, from a lender perspective, Capital One is making a savvy decision, is not like they can give infinite credit lines and having a good quality with possibily good returns (Ejem, high utilization + a lot of swipes and usage) certaintly helps with that.

Re: Another Cap1 thread of an adventure of getting a CLI

Anonymous — Wed, 01 May 2019 12:26:38 GMT

@Anonymous wrote:

This post is a example of how wrong you are, when people with BKs get CLI from $5k to $8k with Cap1, who’s really the idiots? Who’s running the risk vs giving someone a CLI with no BK? I only have a $4500 CL and that’s been over the long run of 4 years, so that $1290 I used last month is using the credit line I was given, which I made a mistake and stated I was denied for usage.

You're comparing apples to oranges and quite honestly, your post just sounds like sour grapes on your part. A BK is not relevant to a CLI conversation. If you want to make it relevant to the approval or denial of a product that's one thing, but once the lender extends credit to someone with a BK it is what it is. What we're talking about here is usage and its impact on a CLI. If the person with the BK gets a CLI from $5k to $8k and is spending heavily on that account/paying it off, it shows Capital One that the CLI would be beneficial to that person and perhaps Capital One as well due to a potential increased spend.

If you're spending $1290 in a cycle on a $4500 card, you don't need a CLI; that's not even 30% of your limit. If you aren't using close to 50% of your limit in a cycle, even with a float of your previous statement balance through almost your entire next cycle until the payment due date you wouldn't hit your limit. I get it that you want a CLI on your card, but from a lending perspective you don't need it in the eyes of Capital One. And, they're right.

Re: Another Cap1 thread of an adventure of getting a CLI

Anonymous — Wed, 01 May 2019 17:22:42 GMT

@Anonymous wrote:
@Anonymous wrote:

This post is a example of how wrong you are, when people with BKs get CLI from $5k to $8k with Cap1, who’s really the idiots? Who’s running the risk vs giving someone a CLI with no BK? I only have a $4500 CL and that’s been over the long run of 4 years, so that $1290 I used last month is using the credit line I was given, which I made a mistake and stated I was denied for usage.
You're comparing apples to oranges and quite honestly, your post just sounds like sour grapes on your part. A BK is not relevant to a CLI conversation. If you want to make it relevant to the approval or denial of a product that's one thing, but once the lender extends credit to someone with a BK it is what it is. What we're talking about here is usage and its impact on a CLI. If the person with the BK gets a CLI from $5k to $8k and is spending heavily on that account/paying it off, it shows Capital One that the CLI would be beneficial to that person and perhaps Capital One as well due to a potential increased spend.

If you're spending $1290 in a cycle on a $4500 card, you don't need a CLI; that's not even 30% of your limit. If you aren't using close to 50% of your limit in a cycle, even with a float of your previous statement balance through almost your entire next cycle until the payment due date you wouldn't hit your limit. I get it that you want a CLI on your card, but from a lending perspective you don't need it in the eyes of Capital One. And, they're right.

Opinions are just that and you seem to think yours is right? Apples to Oranges, I bring in a tangible thought about a person with a BK getting CLIs with CAP1 and you call Discover and others foolish for giving others CLIs that use their cards and maybe don’t spend heavily? Discover upped the credit limit on my authorization card from $6500 to $9800 and it is only being used for small payments and history, looks good on the report, Maybe they reward their foolish consumers. BTW those with BKs that spend heavily are not always the ones that need the CLI and they run a greater risk of defaulting again. But hey you missed my point I was trying to make, but please go on how thats beneficial to CAP1.

Re: Another Cap1 thread of an adventure of getting a CLI

FinStar — Wed, 01 May 2019 18:02:35 GMT

Just a reminder regarding the forum rules for posting. There certainly can be disagreements, but all posts must conform to the Friendly, Supportive and Respectful guidelines - no exceptions.

Thank you for your understanding and cooperation.

-FS

I understand the Capital One hate but there is a process to them

Anonymous — Fri, 21 Jun 2019 12:29:28 GMT

My credit rebuild journey has been long and a learning experience, and lately on the board seeing a lot of CLI frustrations with Cap1, I am the fiercest critic of how Cap1 hands out CLIs. Is there really a process with them or is it just a hit or miss? I think the latter but I think they like to drive the consumer mad until they give out a CLI, so don’t give up on requesting a CLI. After requesting a CLI for the past 2 months and every day for the past 5 days, the impossible happened, I just received a CLI for $2k. I did balance transfers for 2 months straight in the amount of $2k, some on the board said it wouldn’t help and I was like I’ll try it since I was getting the denial for low usage on the account. I am unsure if I am still BEING bucketed to them? I guess I will find out in 6 months, when I request another CLI. But does anyone know if Cap1 reports the CLI to the 3 bureaus right away or close of cycle?

Re: I understand the Capital One hate but there is a process to them

Remedios — Fri, 21 Jun 2019 12:31:28 GMT

It will report at the normal time (after statement closes)

CLI does not cause off cycle report

Re: I understand the Capital One hate but there is a process to them

Anonymous — Fri, 21 Jun 2019 12:36:01 GMT

It should be reported whenever your statement cuts and they do their usual monthly reporting.

I don't get all of the frustration or "hate" when it comes to [lack] of Capital One CLIs personally. I think it's the "easy" lenders out there like Amex, Discover or anyone else that hands out CLIs like candy to people that barely use or in many cases don't use their accounts at all that makes it seem like Capital One is the bad guy. The reality is that Capital One is really the smart one from a risk/reward perspective. If someone isn't using between (say) 40% and 50% or more of their limit consistently from month to month, they don't really "need" a CLI. Now, if you're using your limit that much consistently and aren't getting one, I can understand some frustration. All too often I see threads though were someone is spending "hundreds on their Capital One card every month" and can't get a CLI, but on their $3k or $4k card we're talking around 10% of their limit being used. A CLI in that case, or many cases I read about simply isn't warranted.

Re: I understand the Capital One hate but there is a process to them

Anonymous — Fri, 21 Jun 2019 12:58:03 GMT

@Anonymous wrote:
It should be reported whenever your statement cuts and they do their usual monthly reporting.

I don't get all of the frustration or "hate" when it comes to [lack] of Capital One CLIs personally. I think it's the "easy" lenders out there like Amex, Discover or anyone else that hands out CLIs like candy to people that barely use or in many cases don't use their accounts at all that makes it seem like Capital One is the bad guy. The reality is that Capital One is really the smart one from a risk/reward perspective. If someone isn't using between (say) 40% and 50% or more of their limit consistently from month to month, they don't really "need" a CLI. Now, if you're using your limit that much consistently and aren't getting one, I can understand some frustration. All too often I see threads though were someone is spending "hundreds on their Capital One card every month" and can't get a CLI, but on their $3k or $4k card we're talking around 10% of their limit being used. A CLI in that case, or many cases I read about simply isn't warranted.

We had this dicussion before thats your OP, I see Capital One handing out CLIs like candy to questionable accounts from the approvals I have seen on the board. I relied my experience and you dont understand it because you havent experienced it from Cap1 like I have. And I would beg to differ on Discover since I just got approved with them.

Re: I understand the Capital One hate but there is a process to them

Anonymous — Fri, 21 Jun 2019 14:02:03 GMT

(Mod cut-enough of this its not FSR)

The bottom line is that Capital One isn’t in the business of handing out large CLIs to people who don’t need them. You quote their giving large limits to people with less than perfect credit while conveniently forgetting that a SL is not a CLI and many of us have told you that Capital One is much more generous on subsequent approvals which you’re not willing to do.

There is a process. Show them you need a credit limit increase through consistent usage and payment history or app another card. CLIs are a long game with Capital One. They would much rather dish out 10 $500 limit cards to people who will use them and thus be profitable than give a $5K CLI to someone who doesn’t use what they currently have.

Re: I understand the Capital One hate but there is a process to them

gdale6 — Fri, 21 Jun 2019 14:00:02 GMT

Merged into your older thread on same subject.